Mizuno Corp. Fiscal Q1 Profits Halved on Global Revenue Declines
Mizuno Corporation got little help outside of its native Japan in the fiscal first quarter ended June 30 as all non-domestic regions posted strong double-digit declines for the period. Total worldwide revenues declined 9.3% to ¥40.9 billion ($420 mm), compared to ¥45.2 billion ($433 mm) in the year-ago quarter. Revenues in Japan inched lower 2.9% to ¥30.3 billion ($311 mm), while Europe, the Americas and Asia all declined more than 20% for the period.
The Baseball business declined 4.6% for the quarter to ¥12.5 billion ($128 mm) and Sports Apparel declined 4.8% to ¥7.9 billion ($81 mm), while Sports Footwear decreased 13.1% to ¥7.3 billion ($75 mm) and the Golf business posted the biggest decline, falling 25.0% to ¥6.0 billion ($62 mm) in the fiscal first quarter.
Worldwide gross margins declined 220 basis points to 40.0% of sales from 42.2% of sales in the year-ago period. SG&A dipped 5.5% for the period, but grew 150 basis points as a percent of sales to 35.2% from 33.7% of sales in fiscal Q1 last year.
Fiscal first quarter net income fell 46.5% to ¥1.0 billion ($10 mm) versus ¥1.9 billion ($18 mm) in the year-ago period.
Inventories at quarter-end were down nearly 5.0% to ¥26.7 billion ($279 mm) at June 30, 2009.
The companys forecast for the fiscal year remained consistent at ¥160 billion.